
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC8348]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                         CHAPTER 83--RETIREMENT
 
                SUBCHAPTER III--CIVIL SERVICE RETIREMENT
 
Sec. 8348. Civil Service Retirement and Disability Fund

    (a) There is a Civil Service Retirement and Disability Fund. The 
Fund--
        (1) is appropriated for the payment of--
            (A) benefits as provided by this subchapter or by the 
        provisions of chapter 84 of this title which relate to benefits 
        payable out of the Fund; and
            (B) administrative expenses incurred by the Office of 
        Personnel Management in placing in effect each annuity 
        adjustment granted under section 8340 or 8462 of this title, in 
        administering survivor annuities and elections providing 
        therefor under sections 8339 and 8341 of this title or 
        subchapters II and IV of chapter 84 of this title, in 
        administering alternative forms of annuities under sections 
        8343a and 8420a (and related provisions of law), in making an 
        allotment or assignment made by an individual under section 
        8345(h) or 8465(b) of this title, and in withholding taxes 
        pursuant to section 3405 of title 26 or section 8345(k) or 8469 
        of this title;

        (2) is made available, subject to such annual limitation as the 
    Congress may prescribe, for any expenses incurred by the Office in 
    connection with the administration of this chapter, chapter 84 of 
    this title, and other retirement and annuity statutes; and
        (3) is made available, subject to such annual limitation as the 
    Congress may prescribe, for any expenses incurred by the Merit 
    Systems Protection Board in the administration of appeals authorized 
    under sections 8347(d) and 8461(e) of this title.

    (b) The Secretary of the Treasury may accept and credit to the Fund 
money received in the form of a donation, gift, legacy, or bequest, or 
otherwise contributed for the benefit of civil-service employees 
generally.
    (c) The Secretary shall immediately invest, in interest-bearing 
securities of the United States such currently available portions of the 
Fund as are not immediately required for payments from the Fund. The 
income derived from these investments constitutes a part of the Fund.
    (d) The purposes for which obligations of the United States may be 
issued under chapter 31 of title 31 are extended to authorize the 
issuance at par of public-debt obligations for purchase by the Fund. The 
obligations issued for purchase by the Fund shall have maturities fixed 
with due regard for the needs of the Fund and bear interest at a rate 
equal to the average market yield computed as of the end of the calendar 
month next preceding the date of the issue, borne by all marketable 
interest-bearing obligations of the United States then forming a part of 
the public debt which are not due or callable until after the expiration 
of 4 years from the end of that calendar month. If the average market 
yield is not a multiple of \1/8\ of 1 percent, the rate of interest on 
the obligations shall be the multiple of \1/8\ of 1 percent nearest the 
average market yield.
    (e) The Secretary may purchase other interest-bearing obligations of 
the United States, or obligations guaranteed as to both principal and 
interest by the United States, on original issue or at the market price 
only if he determines that the purchases are in the public interest.
    (f) Any statute which authorizes--
        (1) new or liberalized benefits payable from the Fund, including 
    annuity increases other than under section 8340 of this title;
        (2) extension of the coverage of this subchapter to new groups 
    of employees; or
        (3) increases in pay on which benefits are computed;

is deemed to authorize appropriations to the Fund to finance the 
unfunded liability created by that statute, in 30 equal annual 
installments with interest computed at the rate used in the then most 
recent valuation of the Civil Service Retirement System and with the 
first payment thereof due as of the end of the fiscal year in which each 
new or liberalized benefit, extension of coverage, or increase in pay is 
effective.
    (g) At the end of each fiscal year, the Office shall notify the 
Secretary of the Treasury of the amount equivalent to (1) interest on 
the unfunded liability computed for that year at the interest rate used 
in the then most recent valuation of the System, and (2) that portion of 
disbursement for annuities for that year which the Office estimates is 
attributable to credit allowed for military service, less an amount 
determined by the Office to be appropriate to reflect the value of the 
deposits made to the credit of the Fund under section 8334(j) of this 
title. Before closing the accounts for each fiscal year, the Secretary 
shall credit to the Fund, as a Government contribution, out of any money 
in the Treasury of the United States not otherwise appropriated, the 
following percentages of such amounts; 10 percent for 1971; 20 percent 
for 1972; 30 percent for 1973; 40 percent for 1974; 50 percent for 1975; 
60 percent for 1976; 70 percent for 1977; 80 percent for 1978; 90 
percent for 1979; and 100 percent for 1980 and for each fiscal year 
thereafter.
    (h)(1) Notwithstanding any other statute, the United States Postal 
Service shall be liable for that portion of any estimated increase in 
the unfunded liability of the Fund which is attributable to any benefits 
payable from the Fund to active and retired Postal Service officers and 
employees, and to their survivors, when the increase results from an 
employee-management agreement under title 39, or any administrative 
action by the Postal Service taken pursuant to law, which authorizes 
increases in pay on which benefits are computed.
    (2) The estimated increase in the unfunded liability, referred to in 
paragraph (1) of this subsection, shall be determined by the Office of 
Personnel Management. The United States Postal Service shall pay the 
amount so determined to the Office in 30 equal annual installments with 
interest computed at the rate used in the most recent valuation of the 
Civil Service Retirement System, with the first payment thereof due at 
the end of the fiscal year in which an increase in pay becomes 
effective.
    (i)(1) Notwithstanding any other provision of law, the Panama Canal 
Commission shall be liable for that portion of any estimated increase in 
the unfunded liability of the fund which is attributable to any benefits 
payable from the Fund to or on behalf of employees and their survivors 
to the extent attributable to the amendments made by sections 1241 and 
1242, and the provisions of sections 1231(b) and 1243(a)(1), of the 
Panama Canal Act of 1979, and the amendments made by section 3506 of the 
Panama Canal Commission Authorization Act for Fiscal Year 1991.
    (2) The estimated increase in the unfunded liability referred to in 
paragraph (1) of this subsection shall be determined by the Office of 
Personnel Management. The Panama Canal Commission shall pay to the Fund 
from funds available to it for that purpose the amount so determined in 
annual installments with interest computed at the rate used in the most 
recent valuation of the Civil Service Retirement System.
    (j)(1) Notwithstanding subsection (c) of this section, the Secretary 
of the Treasury may suspend additional investment of amounts in the Fund 
if such additional investment could not be made without causing the 
public debt of the United States to exceed the public debt limit.
    (2) Any amounts in the Fund which, solely by reason of the public 
debt limit, are not invested shall be invested by the Secretary of the 
Treasury as soon as such investments can be made without exceeding the 
public debt limit.
    (3) Upon expiration of the debt issuance suspension period, the 
Secretary of the Treasury shall immediately issue to the Fund 
obligations under chapter 31 of title 31 that (notwithstanding 
subsection (d) of this section) bear such interest rates and maturity 
dates as are necessary to ensure that, after such obligations are 
issued, the holdings of the Fund will replicate to the maximum extent 
practicable the obligations that would then be held by the Fund if the 
suspension of investment under paragraph (1) of this subsection, and any 
redemption or disinvestment under subsection (k) of this section for the 
purpose described in such paragraph, during such period had not 
occurred.
    (4) On the first normal interest payment date after the expiration 
of any debt issuance suspension period, the Secretary of the Treasury 
shall pay to the Fund, from amounts in the general fund of the Treasury 
of the United States not otherwise appropriated, an amount determined by 
the Secretary to be equal to the excess of--
        (A) the net amount of interest that would have been earned by 
    the Fund during such debt issuance suspension period if--
            (i) amounts in the Fund that were not invested during such 
        debt issuance suspension period solely by reason of the public 
        debt limit had been invested, and
            (ii) redemptions and disinvestments with respect to the Fund 
        which occurred during such debt issuance suspension period 
        solely by reason of the public debt limit had not occurred, over

        (B) the net amount of interest actually earned by the Fund 
    during such debt issuance suspension period.

    (5) For purposes of this subsection and subsections (k) and (l) of 
this section--
        (A) the term ``public debt limit'' means the limitation imposed 
    by section 3101(b) of title 31; and
        (B) the term ``debt issuance suspension period'' means any 
    period for which the Secretary of the Treasury determines for 
    purposes of this subsection that the issuance of obligations of the 
    United States may not be made without exceeding the public debt 
    limit.

    (k)(1) Subject to paragraph (2) of this subsection, the Secretary of 
the Treasury may sell or redeem securities, obligations, or other 
invested assets of the Fund before maturity in order to prevent the 
public debt of the United States from exceeding the public debt limit.
    (2) The Secretary may sell or redeem securities, obligations, or 
other invested assets of the Fund under paragraph (1) of this subsection 
only during a debt issuance suspension period, and only to the extent 
necessary to obtain any amount of funds not exceeding the amount equal 
to the total amount of the payments authorized to be made from the Fund 
under the provisions of this subchapter or chapter 84 of this title or 
related provisions of law during such period. A sale or redemption may 
be made under this subsection even if, before the sale or redemption, 
there is a sufficient amount in the Fund to ensure that such payments 
are made in a timely manner.
    (l)(1) The Secretary of the Treasury shall report to Congress on the 
operation and status of the Fund during each debt issuance suspension 
period for which the Secretary is required to take action under 
paragraph (3) or (4) of subsection (j) of this section. The report shall 
be submitted as soon as possible after the expiration of such period, 
but not later than the date that is 30 days after the first normal 
interest payment date occurring after the expiration of such period.
    (2) Whenever the Secretary of the Treasury determines that, by 
reason of the public debt limit, the Secretary will be unable to fully 
comply with the requirements of subsection (c) of this section, the 
Secretary shall immediately notify Congress of the determination. The 
notification shall be made in writing.
    (m)(1) Notwithstanding any other provision of law, the United States 
Postal Service shall be liable for that portion of any estimated 
increase in the unfunded liability of the Fund which is attributable to 
any benefits payable from the Fund to former employees of the Postal 
Service who first become annuitants by reason of separation from the 
Postal Service on or after July 1, 1971, or to their survivors, or to 
the survivors of individuals who die on or after July 1, 1971, while 
employed by the Postal Service, when the increase results from a cost-
of-living adjustment under section 8340 of this title.
    (2) The estimated increase in the unfunded liability referred to in 
paragraph (1) of this subsection shall be determined by the Office after 
consultation with the Postal Service. The Postal Service shall pay the 
amount so determined to the Office in 15 equal annual installments with 
interest computed at the rate used in the most recent valuation of the 
Civil Service Retirement System, and with the first payment thereof due 
at the end of the fiscal year in which the cost-of-living adjustment 
with respect to which the payment relates becomes effective.
    (3) In determining any amount for which the Postal Service is liable 
under this subsection, the amount of the liability shall be prorated to 
reflect only that portion of total service (used in computing the 
benefits involved) which is attributable to civilian service performed 
after June 30, 1971, as estimated by the Office.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 584; Pub. L. 90-83, Sec. 1(85), 
Sept. 11, 1967, 81 Stat. 218; Pub. L. 91-93, title I, Sec. 103(a), Oct. 
20, 1969, 83 Stat. 137; Pub. L. 93-349, Sec. 1, July 12, 1974, 88 Stat. 
354; Pub. L. 94-183, Sec. 2(37), Dec. 31, 1975, 89 Stat. 1058; Pub. L. 
95-454, title IX, Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; 
Pub. L. 96-70, title I, Sec. 1244, Sept. 27, 1979, 93 Stat. 474; Pub. L. 
97-253, title III, Sec. 306(f), Sept. 8, 1982, 96 Stat. 797; Pub. L. 97-
346, Sec. 3(g), Oct. 15, 1982, 96 Stat. 1648; Pub. L. 98-216, 
Sec. 3(a)(5), Feb. 14, 1984, 98 Stat. 6; Pub. L. 98-615, Sec. 2(7), Nov. 
8, 1984, 98 Stat. 3202; Pub. L. 99-335, title II, Sec. 207(j), June 6, 
1986, 100 Stat. 597; Pub. L. 99-509, title VI, Sec. 6002, Oct. 21, 1986, 
100 Stat. 1931; Pub. L. 100-203, title V, Sec. 5428(d), Dec. 22, 1987, 
101 Stat. 1330-274; Pub. L. 101-239, title IV, Sec. 4002(a), Dec. 19, 
1989, 103 Stat. 2133; Pub. L. 101-508, title VII, Secs. 7001(a)(3), 
7101(a), Nov. 5, 1990, 104 Stat. 1388-328, 1388-331; Pub. L. 101-510, 
div. C, title XXXV, Sec. 3506(c), Nov. 5, 1990, 104 Stat. 1847; Pub. L. 
103-424, Sec. 10, Oct. 29, 1994, 108 Stat. 4366; Pub. L. 104-52, title 
IV, Sec. 2, Nov. 19, 1995, 109 Stat. 490; Pub. L. 104-316, title I, 
Sec. 103(h), Oct. 19, 1996, 110 Stat. 3829; Pub. L. 105-362, title XIII, 
Sec. 1302(c), Nov. 10, 1998, 112 Stat. 3293.)

                      Historical and Revision Notes
                                1966 Act
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
(a)-(f)............  5 U.S.C. 2267.                July 31, 1956, ch.
                                                    804, Sec.  401
                                                    ``Sec. 17'', 70
                                                    Stat. 759.
                     ............................  Oct. 4, 1961, Pub. L.
                                                    87-350, Sec.  1(a),
                                                    75 Stat. 770.
(g)................  [Uncodified].                 Aug. 28, 1958, Pub.
                                                    L. 85-844, Sec.  101
                                                    (par. under ``Civil
                                                    Service Retirement
                                                    and Disability
                                                    Fund''), 72 Stat.
                                                    1064.
------------------------------------------------------------------------

    In subsection (a), the first sentence is based on former section 
2251(f), which is carried into section 8331.
    In subsection (f), the words ``to carry out this subchapter'' are 
substituted for ``to continue this chapter in full force and effect''.
    In subsection (g), the words ``after the enactment of this Act'' are 
omitted as executed.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.

                                1967 Act
------------------------------------------------------------------------
                                                    Source (Statutes at
 Section of title 5       Source (U.S. Code)               Large)
------------------------------------------------------------------------
8348(a)............  5 App.: 2267(a).              Sept. 27, 1965, Pub.
                                                    L. 89-205, Sec.
                                                    1(b), 79 Stat. 840.
------------------------------------------------------------------------

    The change in subsection (f) is made for uniformity in style and 
because the full title of the Commission appears in subsection (a).

                       References in Text

    Sections 1241 and 1242 of the Panama Canal Act of 1979 [Pub. L. 96-
70], referred to in subsec. (i)(1), amended sections 8336 and 8339 of 
this title, respectively.
    Sections 1231(b) and 1243(a)(1) of the Panama Canal Act of 1979 
[Pub. L. 96-70], referred to in subsec. (i)(1), are classified to 
sections 3671(b) and 3681(a)(1) of Title 22, Foreign Relations and 
Intercourse, respectively.
    Section 3506 of the Panama Canal Commission Authorization Act for 
Fiscal Year 1991 [Pub. L. 101-510, div. C, title XXXV], referred to in 
subsec. (i)(1), amended sections 8336, 8339, and 8348 of this title.


                               Amendments

    1998--Subsec. (g). Pub. L. 105-362 struck out at end ``The Office 
shall report to the President and to the Congress the sums credited to 
the Fund under this subsection.''
    1996--Subsec. (l)(1). Pub. L. 104-316 struck out at end ``The 
Secretary shall concurrently transmit a copy of such report to the 
Comptroller General of the United States.''
    1995--Subsec. (a)(1)(B). Pub. L. 104-52 inserted ``in making an 
allotment or assignment made by an individual under section 8345(h) or 
8465(b) of this title,'' after ``of law),'' and ``or section 8345(k) or 
8469 of this title'' before semicolon at end.
    1994--Subsec. (a)(3). Pub. L. 103-424 added par. (3).
    1990--Subsec. (a)(1)(B). Pub. L. 101-508, Sec. 7001(a)(3), inserted 
``in administering alternative forms of annuities under sections 8343a 
and 8420a (and related provisions of law),'' before ``and in 
withholding''.
    Subsec. (i)(1). Pub. L. 101-510 substituted ``1979, and the 
amendments made by section 3506 of the Panama Canal Commission 
Authorization Act for Fiscal Year 1991'' for ``1979''.
    Subsec. (m)(1). Pub. L. 101-508, Sec. 7101(a), substituted ``July 1, 
1971'' for ``October 1, 1986'' in two places.
    1989--Subsec. (m). Pub. L. 101-239 added subsec. (m).
    1987--Subsec. (i)(2). Pub. L. 100-203 substituted ``The Panama Canal 
Commission shall pay to the Fund from funds available to it'' for ``The 
Secretary of the Treasury shall pay to the Fund from appropriations''.
    1986--Subsec. (a). Pub. L. 99-335 inserted reference to provisions 
of chapter 84 of this title which relate to benefits payable out of the 
Fund in par. (1)(A), inserted ``or 8462'' and reference to subchapters 
II and IV of chapter 84 of this title in par. (1)(B), and inserted 
reference to chapter 84 of this title in par. (2).
    Subsecs. (j) to (l). Pub. L. 99-509 added subsecs. (j) to (l).
    1984--Subsec. (a)(1)(B). Pub. L. 98-615 inserted ``, in 
administering survivor annuities and elections providing therefor under 
sections 8339 and 8341 of this title,''.
    Subsec. (d). Pub. L. 98-216 substituted ``chapter 31 of title 31'' 
for ``the Second Liberty Bond Act, as amended,''.
    1982--Subsec. (a)(1)(B). Pub. L. 97-346 inserted ``and in 
withholding taxes pursuant to section 3405 of title 26''.
    Subsec. (g). Pub. L. 97-253, Sec. 306(f), inserted ``, less an 
amount determined by the Office to be appropriate to reflect the value 
of the deposits made to the credit of the Fund under section 8334(j) of 
this title'' after ``allowed for military service''.
    1979--Subsec. (i). Pub. L. 96-70 added subsec. (i).
    1978--Subsecs. (a), (g), (h)(2). Pub. L. 95-454 substituted ``Office 
of Personnel Management'' and ``Office'' for ``Civil Service 
Commission'' and ``Commission'', respectively, wherever appearing.
    1975--Subsec. (h)(2). Pub. L. 94-183 substituted ``30'' for 
``thirty''.
    1974--Subsec. (h). Pub. L. 93-349 added subsec. (h).
    1969--Subsec. (a). Pub. L. 91-93, Sec. 103(a)(1), designated 
existing provisions as par. (1)(A) and (B) and added par. (2).
    Subsec. (f). Pub. L. 91-93, Sec. 103(a)(2), added subsec. (f) and 
struck out former subsec. (f) which required the Commission to submit 
estimates of appropriations necessary to finance the Fund on a normal 
cost plus interest basis and to carry out this subchapter.
    Subsec. (g). Pub. L. 91-93, Sec. 103(a)(2), added subsec. (g) and 
struck out former subsec. (g) which contained restriction against use of 
Fund money to pay an increase in annuity benefits or a new annuity 
benefit under this subchapter or an earlier statute without an 
appropriation being made to the Fund in a sufficient amount to prevent 
an immediate increase in the unfunded accrued liability of the Fund.


                    Effective Date of 1990 Amendment

    Section 7101(d) of Pub. L. 101-508 provided that: ``This section and 
the amendments made by this section [amending this section, enacting 
provisions set out as a note under this section, and repealing 
provisions set out as notes under this section] shall take effect on 
October 1, 1990.''


                    Effective Date of 1989 Amendment

    Section 4002(b)(1) of Pub. L. 101-239, which provided that section 
4002 of Pub. L. 101-239 (amending this section and enacting provisions 
set out as notes under this section) be effective as of Oct. 1, 1986, 
was repealed by Pub. L. 101-508, title VII, Sec. 7101(b), Nov. 5, 1990, 
104 Stat. 1388-331.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section 
5429 of Pub. L. 100-203, set out as a note under section 3712 of Title 
22, Foreign Relations and Intercourse.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-335 effective Jan. 1, 1987, see section 
702(a) of Pub. L. 99-335, set out as an Effective Date note under 
section 8401 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-615 effective May 7, 1985, with enumerated 
exceptions and specific applicability provisions, see section 4(a)(1), 
(5)(D) of Pub. L. 98-615, as amended, set out as a note under section 
8341 of this title.


                    Effective Date of 1982 Amendments

    Amendment by Pub. L. 97-346 effective Sept. 8, 1982, see section 
3(n) of Pub. L. 97-346, set out as a note under section 8332 of this 
title.
    Amendment by Pub. L. 97-253 effective Oct. 1, 1982, except that any 
employee or Member who retired after Sept. 8, 1982, and before Oct. 1, 
1985, or is entitled to an annuity under chapter 83 of this title based 
on a separation from service occurring during such period, or a survivor 
of such individual, may make a payment under section 8334(j)(1) of this 
title, and regulations required to be issued under section 8334(j)(1) of 
this title, to be issued by the Office of Personnel Management within 90 
days after such effective date, see section 306(g) of Pub. L. 97-253, as 
amended, set out as a note under section 8331 of this title.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-70 effective Oct. 1, 1979, see section 3304 
of Pub. L. 96-70, set out as an Effective Date note under section 3601 
of Title 22, Foreign Relations and Intercourse.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-454 effective 90 days after Oct. 13, 1978, 
see section 907 of Pub. L. 95-454, set out as a note under section 1101 
of this title.


                    Effective Date of 1974 Amendment

    Amendment by Pub. L. 93-349 effective July 1, 1971, except that the 
Postal Service shall not be required to make (1) the payments due June 
30, 1972, June 30, 1973, and June 30, 1974, attributable to pay 
increases granted by the Postal Service prior to July 1, 1973, until 
such time as funds are appropriated to the Postal Service for that 
purpose, and (2) the transfer to the Civil Service Retirement and 
Disability Fund required by title II of the Treasury, Postal Service, 
and General Government Appropriation Act, 1974, Public Law 93-143, see 
section 3 of Pub. L. 93-349, set out as a note under section 1005 of 
Title 39, Postal Service.


                    Effective Date of 1969 Amendment

    Section 103(b)(1) of Pub. L. 91-93 provided that: ``The provisions 
of subsection (g) of section 8348 of title 5, United States Code, as 
contained in the amendment made by subsection (a)(2) of this section, 
shall become effective at the beginning of the fiscal year which ends on 
June 30, 1971.''


      Payments To Reimburse Fund for Increase in Unfunded Liability

    Pub. L. 105-261, div. C, title XXXI, Sec. 3154(l), Oct. 17, 1998, 
112 Stat. 2256, provided that:
    ``(1) The Department of Energy shall pay into the Civil Service 
Retirement and Disability Fund an amount determined by the Director of 
the Office of Personnel Management to be necessary to reimburse the Fund 
for any estimated increase in the unfunded liability of the Fund 
resulting from the amendments related to the Civil Service Retirement 
System under this section [amending sections 3307, 8331, 8334 to 8336, 
8401, 8412, 8415, 8422, 8423, and 8425 of this title], and for any 
estimated increase in the supplemental liability of the Fund resulting 
from the amendments related to the Federal Employees Retirement System 
under this section.
    ``(2) The Department shall pay the amount so determined in five 
equal annual installments with interest computed at the rate used in the 
most recent valuation of the Federal Employees Retirement System.
    ``(3) The Department shall make payments under this subsection from 
amounts available for weapons activities of the Department.''


 Payments by Postal Service Relating to Corrected Calculations for Past 
                            Retirement COLAs

    Pub. L. 103-66, title XI, Sec. 11101(a), Aug. 10, 1993, 107 Stat. 
413, provided that: ``In addition to any other payments required under 
section 8348(m) of title 5, United States Code, or any other provision 
of law, the United States Postal Service shall pay into the Civil 
Service Retirement and Disability Fund a total of $693,000,000, of 
which--
        ``(1) at least one-third shall be paid not later than September 
    30, 1996;
        ``(2) at least two-thirds shall be paid not later than September 
    30, 1997; and
        ``(3) any remaining balance shall be paid not later than 
    September 30, 1998.''


                Timely Processing of Retirement Benefits

    Pub. L. 102-484, div. D, title XLIV, Sec. 4436(d), Oct. 23, 1992, 
106 Stat. 2724, as amended by Pub. L. 103-337, div. A, title III, 
Sec. 341(b)(2), Oct. 5, 1994, 108 Stat. 2720; Pub. L. 105-85, div. A, 
title XI, Sec. 1106(b)(2), Nov. 18, 1997, 111 Stat. 1924, provided that:
    ``(1) In order to ensure the timely processing of applications for 
retirement benefits, under the Civil Service Retirement System or the 
Federal Employees' Retirement System, for civilian employees of the 
Department of Defense and other employees who retire when their agency 
is undergoing a major reorganization, a major reduction in force, or a 
major transfer of function, the costs incurred by the Office of 
Personnel Management in processing any such application shall be deemed 
to be an administrative expense described in section 8348(a)(1)(B) of 
title 5, United States Code.
    ``(2) This subsection shall apply with respect to applications for 
retirement benefits based on separations occurring before January 1, 
2002.''


                   Pre-1991 Cost-of-Living Adjustments

    Section 7101(c) of Pub. L. 101-508, as amended by Pub. L. 102-378, 
Sec. 5(a)(1), Oct. 2, 1992, 106 Stat. 1358, provided that:
    ``(1) For the purpose of this subsection--
        ``(A) the term `pre-1991 COLA' means a cost-of-living adjustment 
    which took effect in any of the fiscal years specified in 
    subparagraphs (A)-(N) of paragraph (3);
        ``(B) the term `post-1990 fiscal year' means a fiscal year after 
    fiscal year 1990; and
        ``(C) the term `pre-1991 fiscal year' means a fiscal year before 
    fiscal year 1991.
    ``(2) Notwithstanding any other provision of law, an installment 
(equal to an amount determined by reference to paragraph (3)) shall be 
payable by the United States Postal Service in a post-1990 fiscal year, 
with respect to a pre-1991 COLA, if such fiscal year occurs within the 
15-fiscal-year period which begins with the first fiscal year in which 
that COLA took effect.
    ``(3) Notwithstanding any provision of section 8348(m) of title 5, 
United States Code, or any determination thereunder (including any made 
under such provision, as in effect before October 1, 1990), the 
estimated increase in the unfunded liability referred to in paragraph 
(1) of such section 8348(m) shall be payable, in accordance with this 
subsection, based on annual installments equal to--
        ``(A) $6,500,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1977;
        ``(B) $7,000,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1978;
        ``(C) $10,400,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1979;
        ``(D) $20,500,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1980;
        ``(E) $26,100,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1981;
        ``(F) $28,100,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1982;
        ``(G) $30,600,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1983;
        ``(H) $5,700,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1984;
        ``(I) $19,400,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1985;
        ``(J) $7,400,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1986;
        ``(K) $8,500,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1987;
        ``(L) $36,800,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1988;
        ``(M) $51,600,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1989; and
        ``(N) $63,500,000 each, with respect to the cost-of-living 
    adjustment which took effect in fiscal year 1990.
    ``(4) Any installment payable under this subsection shall be paid by 
the Postal Service at the same time as when it pays any installments due 
in that same fiscal year under section 8348(m) of title 5, United States 
Code.
    ``(5) An installment payable under this subsection in a fiscal year, 
with respect to a pre-1991 COLA, shall be in lieu of any other 
installment for which the Postal Service might otherwise be liable in 
such fiscal year, with respect to such COLA, under section 8348(m) of 
title 5, United States Code.''
    [Amendment by Pub. L. 102-378 to section 7101(c) of Pub. L. 101-508, 
set out above, effective Nov. 5, 1990, see section 9(b)(6) of Pub. L. 
102-378, set out as an Effective Date of 1992 Amendment note under 
section 6303 of this title.]


  Payments Relating to Amounts Which Would Have Been Due Before Fiscal 
                                Year 1987

    Section 7103 of Pub. L. 101-508 provided that:
    ``(a) Definition.--For the purpose of this section, the term `pre-
1987 fiscal year' means a fiscal year before fiscal year 1987.
    ``(b) For Past Retirement COLAs.--As payment for any amounts which 
would have been due in any pre-1987 fiscal year under the provisions of 
section 8348(m) of title 5, United States Code (as amended by section 
7101) if such provisions had been in effect as of July 1, 1971, the 
United States Postal Service shall pay into the Civil Service Retirement 
and Disability Fund--
        ``(1) $216,000,000, not later than September 30, 1991;
        ``(2) $266,000,000, not later than September 30, 1992;
        ``(3) $316,000,000, not later than September 30, 1993;
        ``(4) $416,000,000, not later than September 30, 1994; and
        ``(5) $471,000,000, not later than September 30, 1995.
    ``(c) For Past Health Benefits.--As payment for any amounts which 
would, for any period ending before the start of fiscal year 1987, have 
been payable under the provisions of section 8906(g)(2) of title 5, 
United States Code (as amended by section 7102) if such provisions had 
been in effect as of July 1, 1971, the United States Postal Service 
shall pay into the Employees Health Benefits Fund--
        ``(1) $56,000,000, not later than September 30, 1991;
        ``(2) $47,000,000, not later than September 30, 1992;
        ``(3) $62,000,000, not later than September 30, 1993;
        ``(4) $56,000,000, not later than September 30, 1994; and
        ``(5) $234,000,000, not later than September 30, 1995.''


 Certain Postal Service Annuitants; Size of Annual Installments To Fund 
                          Previous Years' COLAs

    Section 4002(b)(2) of Pub. L. 101-239, which provided that 
notwithstanding any provision of section 8348(m) of this title the 
estimated increase in the unfunded liability referred to in section 
8348(m)(1) was to be payable based on annual installments equal to 
specified amounts for fiscal years 1987 to 1989, was repealed by Pub. L. 
101-508, title VII, Sec. 7101(b), Nov. 5, 1990, 104 Stat. 1388-331.


      Certain Postal Service Annuitants; Additional Amount Payable

    Section 4002(b)(3) of Pub. L. 101-239, which provided that first 
payment made under provisions of section 8348(m) of this title was to 
include, in addition to the amount which would otherwise have been 
payable at that time, an amount equal to the sum of any amounts which 
would have been due under those provisions in any prior year if this 
section had been enacted before Oct. 1, 1986, and which provided the 
method of computation, was repealed by Pub. L. 101-508, title VII, 
Sec. 7101(b), Nov. 5, 1990, 104 Stat. 1388-331.


 Status of Original Subsec. (g) Provisions During Period From Oct. 20, 
                          1969 to June 30, 1970

    Section 103(b)(2) of Pub. L. 91-93 provided that: ``Paragraph (1) of 
this subsection [set out as Effective Date of 1969 Amendment note 
above], shall not be held or considered to continue in effect after the 
enactment of this Act [Oct. 20, 1969], the provisions of section 8348(g) 
of title 5, United States Code, as in effect immediately prior to such 
enactment.''


Inapplicability to Benefits Under Pub. L. 89-737 of Prohibition Against 
 Payment of Increased Annuity Benefit Without Compensating Appropriation

    Section 3 of Pub. L. 89-737, Nov. 2, 1966, 80 Stat. 1164, which 
provided that section 8348(g) of title 5, United States Code, does not 
apply with respect to annuity benefits resulting from the enactment of 
this Act [amending sections 8114, 8331, and 8704 of this title and 
section 1117 of former Title 5, Executive Departments and Government 
Officers and Employees], was repealed by Pub. L. 90-83, Sec. 10(b), 
Sept. 11, 1967, 81 Stat. 223.


 Redemption of Obligations Held Prior to Oct. 4, 1961; Reinvestment of 
                                Proceeds

    Pub. L. 87-350, Sec. 1(b) Oct. 4, 1961, 75 Stat. 770, provided that: 
``All special issues in which the civil service retirement and 
disability fund is invested in accordance with section 17(d) of the 
Civil Service Retirement Act [subsecs. (d) and (e) of this section] as 
in effect prior to the enactment of this Act [Oct. 4, 1961] shall be 
redeemed and the moneys reinvested by the Secretary of the Treasury, as 
nearly as may be practicable, in equal annual amounts over the period of 
ten calendar years beginning with the calendar year 1962, in accordance 
with such section 17(d), as amended by subsection (a) of this section.''

                  Section Referred to in Other Sections

    This section is referred to in sections 8331, 8401 of this title; 
title 20 section 125; title 25 section 450i; title 42 section 2297h-8.
